Guilty plea entered in insurance fraud case

By WES WOLFE – Kinston Free Press

Published: Wednesday, November 14, 2012 at 10:16 AM.

In a conversation with investigators, Waters said Roland Steed approached him about the embezzlement scheme at an ECU baseball game in 1996. Roland Steed was vice president of claims for Discovery from 1996 to November 2011.

According to information given by Assistant District Attorney Imelda Pate during the plea hearing, Waters said Roland Steed devised and implemented the scheme, running the operation with his co-conspirators for 15 years. Pate said prosecutors believe Roland Steed acted as a hub, and his co-conspirators were not aware of each other’s involvement in the scheme.

Pate said the state was only able to obtain bank records back to 2005, so there weren’t records to back Waters’ claim. However, Waters maintained an account at BB&T under the name Horizon Services since the late ‘90s. From 2005-2011, the only deposits came from checks handed to him by Steed. Waters admitted he would deposit the money in the BB&T account, and once the check cleared, take the cash amount out and split it with Steed.

With his share of the cash, Waters said he bought jewels and used most of it for gambling. He would go on trips to places like Atlantic City and the Bahamas, taking with him between $6,000 and $7,000. The money also provided his only source of income for six to seven years. At times, he used it to pay for one daughter’s living expenses when she was in college, and another daughter’s bills.

However, according to the plea, he kept his wife out of the loop. Waters said he kept the Horizon Services rubber stamp — for use on the checks — in the trunk of his car, then threw it away when he began to sense trouble.

Waters’ sentencing hearing will likely come once the other three cases are disposed.

What’s $2.3 million worth? About 71 years in prison — and that’s if you cooperate.

From January 2005 to October 2011, Edward Earl Waters allegedly conspired with Roland Edward Steed, of Swansboro, to defraud Kinston’s Discovery Insurance Company of more than $2.3 million dollars. Tuesday, Waters entered into a deal with state prosecutors, pleading guilty to two counts of aiding and abetting obtaining property by means of false pretense and two counts of conspiracy.

The 62-year-old Kinston resident could receive a maximum sentence of 71 years and six months in prison.

Steed, 67 and the alleged ringleader; Marvin Lyle Quinn, 55 of Goldsboro; and Franklin Ronald Steed, 62 of Denton, all received a continuance until the administrative Superior Court hearing on Jan. 7. Quinn and Franklin Steed made their $1 million bond and remain free until the next hearing. Roland Edward Steed made his $2.5 million bond. Russell S. Ward, who the indictment says deposited $2.15 million in fraudulent checks, died Nov. 9, 2011.

Waters remains incarcerated on a $1 million bond.

“Mr. Waters has acknowledged his guilt, and wanted to move forward and accept responsibility as soon as possible,” said Waters’ defense attorney, Rudy Ashton of New Bern firm McCotter Ashton, P.A.

Ashton said Waters will testify should any of the other cases go to trial.

In a conversation with investigators, Waters said Roland Steed approached him about the embezzlement scheme at an ECU baseball game in 1996. Roland Steed was vice president of claims for Discovery from 1996 to November 2011.

According to information given by Assistant District Attorney Imelda Pate during the plea hearing, Waters said Roland Steed devised and implemented the scheme, running the operation with his co-conspirators for 15 years. Pate said prosecutors believe Roland Steed acted as a hub, and his co-conspirators were not aware of each other’s involvement in the scheme.

Pate said the state was only able to obtain bank records back to 2005, so there weren’t records to back Waters’ claim. However, Waters maintained an account at BB&T under the name Horizon Services since the late ‘90s. From 2005-2011, the only deposits came from checks handed to him by Steed. Waters admitted he would deposit the money in the BB&T account, and once the check cleared, take the cash amount out and split it with Steed.

With his share of the cash, Waters said he bought jewels and used most of it for gambling. He would go on trips to places like Atlantic City and the Bahamas, taking with him between $6,000 and $7,000. The money also provided his only source of income for six to seven years. At times, he used it to pay for one daughter’s living expenses when she was in college, and another daughter’s bills.

However, according to the plea, he kept his wife out of the loop. Waters said he kept the Horizon Services rubber stamp — for use on the checks — in the trunk of his car, then threw it away when he began to sense trouble.

Waters’ sentencing hearing will likely come once the other three cases are disposed.